Luxembourg is the only country in Europe with a legal framework permitting private exploration of space resources, which has created a nascent space industry.

However, government efforts to bolster the sector have come under scrutiny after revealing a €12 million loss through its investment in US firm Planetary Resources.

Deep Space Industries, headquartered in San Jose, California, will be rebranded as Bradford Space Inc. following the deal.

In a press statement, Bradford said the acquisition would create its first substantial presence in the US.

Bradford, a US-owned space systems manufacturer, currently has locations in the Netherlands and Sweden.

Bradford director Ian Fichtenbaum said: "The DSI team provided very innovative solutions to the problem of exploring the solar system at a reasonable cost, and we are eager to see if that can be developed with the help of Bradford technologies."

Get the Luxembourg Times delivered to your inbox twice a day. Sign up for your free newsletters here.